Hybrid vehicle importers accuse the new government of increasing taxes, which has brought down their sales drastically.
According to vehicle importers, buyers opted to buy hybrid vehicles considering the economic value in lower fuel consumption, but added that with the high taxes imposed by the new government from the interim budget presented in Parliament on January 29, not only the hybrid, but also the normal vehicle sales has come down.
“As a result of the tax increases, the prices of higher engine capacity vehicles have gone up while the price of lower engine capacity vehicles, have come down,” a vehicle importer said.
According to him, it is the bounden duty of the government to reduce the taxes of hybrid vehicles as they consume less fuel and are environment friendly.
“We are spending billions of rupees on fuel. By using hybrid vehicles in the country, we can reduce the fuel consumption and help save foreign exchange,” he added. The sources further accused the government for bringing the used vehicle import tax on par with the brand new import tax and added that their businesses are suffering immensely.
“Earlier, vehicle importers had to pay a lesser tax on used vehicle importation and the vehicle agents had to pay a higher tax. After the new government came into power they removed the import duty ratio and all vehicle importers and the agents now pay the same tax,” he said.
However, he said that there is a high demand for Indian vehicles in the market now as their taxes have been brought down by 15%.
“Taxes on vehicles with less than 1000 CC were brought down and their sales are picking up now. Even the buyers have to be in the waiting list to buy these small vehicles. However, it is disheartening to note that the government does not consider less environment impact vehicles on the roads,” he added.local media